Apple 'considered' buying mobile payment firm Square, but Google deal seen as more likely

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  • Reply 61 of 128
    melgrossmelgross Posts: 31,743member
    Marvin wrote: »
    They've already implemented a working, elegant solution. It's easy to think a company like Apple could do the same but it all comes down to the staff they have to cover a particular area. Before they had MobileMe, it would be easy to suggest that they could do it themselves rather than buy the DropBox team but look how it turned out doing it in-house.

    Look at the features of Square's POS system, how long would it take Apple to build, test and deploy all that:

    https://squareup.com/features

    The supplementary hardware is all designed for iPad.

    They currently process $15b of transactions per year (excluding Starbucks for some reason):

    https://squareup.com/news/releases/2013/square-reinvents-the-register-with-square-stand

    "While Square usage continues to grow on smartphones, it is growing at a faster rate on iPads: iPad customers now represent nearly 50% of total payments processed by Square. The average payment volume processed by these customers is more than double the average volume processed by Square customers using smartphones."

    $8b is a lot to spend because they'd only make 2.5% of the transactions as gross profit, although they could make some on the hardware too but Tim Cook blew $12b in a share buyback in 2 weeks. This certainly seems like a better way to be spending their cash as it has some growth potential. US retail alone topped $100b:

    http://www.pwc.com/us/en/press-releases/2014/pwc-retail-consumer-ma-deal-press-release.jhtml

    That's a good recurring revenue stream as they make money even when customers buy other products.

    Touch id is just one part of the payment system and they can add support in themselves. Everywhere you see a Square stand, they'll support touch id payments.

    Exactly the point I was making, though you fleshed it out extremely well. Somehow, some people think that all Apple has to do is snap their corporate fingers, and it will appear. While Apple can do this, if they want to, it's a major investment in time. Just like they buy other smaller companies so they won't have to invest the time, they could do that here.

    But here, there is a leader in the field with actual income coming in, and a great deal of growth potential along with continued industry leadership (which is why the price would be so high). So far, paypal's own service and readers have been flat.
  • Reply 62 of 128
    dasanman69dasanman69 Posts: 12,980member
    From a business owner's perspective I think it has been unwise of Square to only develop for iOS. Unless there are overriding security concerns. They should also extend their product to Android. One never knows when a bidding war might break out.

    Have you not been following Apple ]['s (it's such a pain to type that) posts? Android users are too broke to even pay attention. ;)
  • Reply 63 of 128
    melgrossmelgross Posts: 31,743member
    dmarcoot wrote: »
    I know 4 friends with business that use Square now.

    The only thing they have of worth is the customer base who already is using iPads, iPhones and iPod touches to interface with the product.

    Apple's customers.

    I can't imagine they have any technology Apple could not replicate. Its a credit card reader with syncing. Its piggy backs off the iPhones wireless for christ sake.

    If Apple made a better product, they just might switch if the hardware costs to dont set them back.

    Read Marvin's post.

    Everyone here should read Marvin's post.
  • Reply 64 of 128
    SpamSandwichSpamSandwich Posts: 31,197member
    andysol wrote: »
    They support Android- feature sets are identical for Android and iPhone.  The only thing that has more options are iOS for iPad.

    That's what I get for commenting on a subject about which I know almost nothing. Thanks for the info.
  • Reply 65 of 128
    dasanman69dasanman69 Posts: 12,980member
    melgross wrote: »
    .....income coming in....

    Have you been socializing with Android users? :lol:
  • Reply 66 of 128
    melgrossmelgross Posts: 31,743member
    From a business owner's perspective I think it has been unwise of Square to only develop for iOS. Unless there are overriding security concerns. They should also extend their product to Android. One never knows when a bidding war might break out.

    It's true. But over the years, though less so now with the latest OS upgrade, Android hasn't been stable enough for this purpose. And the hardware hasn't been as good. For the most part, that's still true.

    And, of course, a company's philosophy has be be regarded as well. Many developers just develop for one platform. Don't forget that iOS devices have a connector that's much more useful than the USB connector on other OS devices too. Not that that's needed here, but still...

    iOS is also much more secure than Android, though it's not perfect.
  • Reply 67 of 128
    melgrossmelgross Posts: 31,743member
    I just thought I'd follow your lead.

    Good luck on that. My day has been great.
  • Reply 68 of 128

    ... and now it's okay to question Tim Cook's decision making?

     

    Hmmmmm...

  • Reply 69 of 128
    melgrossmelgross Posts: 31,743member
    dasanman69 wrote: »
    Have you been socializing with Android users? :lol:

    Ah, no comment!
  • Reply 70 of 128
    Quote:

    Originally Posted by melgross View Post





    Good luck on that. My day has been great.

     

    So has mine.

  • Reply 71 of 128
    melgrossmelgross Posts: 31,743member
    ... and now it's okay to question Tim Cook's decision making?

    Hmmmmm...

    It's always been ok, just as it was ok to question that of Jobs, who made some questionable calls.
  • Reply 72 of 128
    Quote:

    Originally Posted by melgross View Post





    It's always been ok, just as it was ok to question that of Jobs, who made some questionable calls.

     

    Oh, I know it's okay... but you sure as hell wouldn't believe that for a minute after reading a few threads on AI.

  • Reply 73 of 128
    dasanman69dasanman69 Posts: 12,980member
    melgross wrote: »
    Ah, no comment!

    That's not a 'no' :lol:
  • Reply 74 of 128
    melgrossmelgross Posts: 31,743member
    Oh, I know it's okay... but you sure as hell wouldn't believe that for a minute after reading a few threads on AI.

    Yeah, we can agree on that. I find it to be true in a lot of places, not just on Apple boards. That's is, not questioning the "leader" of any particular organization that has a fan base. You should go to RED's site, sheesh! Just question a feature, and not only are you insulted by the fans there, which are a higher percentage than even here, but the owner himself comes on and insults you!
  • Reply 75 of 128
    Jack would make an excellent addition to the Apple e team.
  • Reply 76 of 128
    melgrossmelgross Posts: 31,743member
    dasanman69 wrote: »
    That's not a 'no' :lol:

    No comment.
  • Reply 77 of 128
    rayzrayz Posts: 814member
    Quote:
    Originally Posted by Rogifan View Post





    Why do it? To stop somebody else from doing it, that why.

     

    That's got to be the worst reason for buying any company. So you think that they should drop $8Billion (and contrary to popular belief, 8bill is a lot of money in anyone's book, including Apple's) on a company that will hang around the company's neck, swallowing resources until they can sell it for a fraction of what they bought it for?

     

    When folk press Apple to drop huge amounts of money on companies because everyone else is doing it, they forget one thing: Apple doesn't buy companies for their products, it buys companies for their talent and expertise. I remember when Apple bought PA Semi, and folk thought it was for the PowerPC chips they were working on. 

     

    What happened next?

     

    They dumped PPC and moved to Intel. What they wanted from PA Semi was expertise in power-efficient mobile processors.

     

    Did Apple buy Anobit so they could make memory chips, or did they buy them for their expertise in extending the life of NAND chips?

     

    When Apple bought Authentec, did they just stick their product on the iPhone? No, they used Authentec's talent and expertise to build a kick-arse biometric reader that will form the basis of their payment system.

     

    This is the simple question that folk fail to ask when wondering why Apple hasn't bought this company or that company: Is there any expertise here that Apple doesn't already have?

     

    They aren't interested in anything Square makes, because Square doesn't actually make anything; they resell Apple iPads. Yes, they have a nice line in payments, but that doesn't come anywhere close to the half billion credit cards that Apple already has on record.

     

    Square is great, I'm sure, but there are other payment systems (you can buy them at your local Apple store) that are great too.

     

    If Apple hasn't bought Square already, then they don't think that they have a particular skill that the company needs.

     

    I think there's a bigger chance that Apple would have bought Burberrry, just to get hold of their CEO.

  • Reply 78 of 128
    Quote:

    Originally Posted by melgross View Post





    Yeah, we can agree on that. I find it to be true in a lot of places, not just on Apple boards. That's is, not questioning the "leader" of any particular organization that has a fan base. You should go to RED's site, sheesh! Just question a feature, and not only are you insulted by the fans there, which are a higher percentage than even here, but the owner himself comes on and insults you!

     

    ... and, to tell you the truth, my initial reaction to the sale of Square would be for Apple to buy it. Maybe Cook is too concerned about the purchase price, which is hard for me to believe because, from everything I have read, he is a long range planner.

     

    I guess that's the question to ask...   Why would Cook/Apple grow soft on the idea of buying Square?

     

    Does Apple already have a system nearing completion and Square doesn't fit in with that vision? That would be my first guess.

     

    Is Tim Cook just making a bad decision? Honestly, I've never felt comfortable with Cook as a long term planner/innovator.

     

    Is it the price? Is Cook tripping over dollars to pick up dimes (see what I did there)?

  • Reply 79 of 128
    rogifanrogifan Posts: 10,669member
    Oh, I know it's okay... but you sure as hell wouldn't believe that for a minute after reading a few threads on AI.
    I suppose it's one of those things where people are OK when the criticizing is over something they don't agree with/like (e.g. iPhone 5C).
  • Reply 80 of 128
    andysolandysol Posts: 2,506member
    Quote:
    Originally Posted by SpamSandwich View Post





    That's what I get for commenting on a subject about which I know almost nothing.

    Hey- I do it all the time! <img class=" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />

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